접대비 및 접대비손금한도 초과지출이 이익지속성에 미치는 영향

This study examined whether entertainment expenses(ENT) and entertainment expenditures in excess of corporate tax deduction limit(OVER) affect the earnings persistence(EP) that reflects time series with random walk with drift. This study empirically analyzed the explanatory relationship of the firms (except the financial industry) listed on the KOSPI, which can estimate the time series earnings sustainability for the past 30 years from 1987 to 2018, in response to the sample of 720 years-company that can obtain the entertainment expenses(ENT) and entertainment expenditures in excess of corporate tax deduction limit(OVER) from 2017 to 2019. The results of the analysis are summarized as follows. Firstly, as a result of the mean difference analysis, the mean of the entertainment expenses(ENT) and entertainment expenditures in excess of corporate tax deduction limit(OVER) of the group whose earnings persistence exceeded the median was lower at 1% significance level than the group with the median. In addition, the mean of earnings persistence in the group with entertainment expenses exceeding the median was lower than that of the group with the median and showed a significant difference at 5% level. In the group with entertainment expenditures in excess of corporate tax deduction limit(OVER), the mean in earnings persistence was significantly lower at 1% than the group with entertainment expenditures in excess of corporate tax deduction limit(OVER). These results mean that earnings persistence is lower in the firms with a large proportion of entertainment expenses. Secondly, as a result of multiple regression analysis, the regression coefficient value of entertainment expenses(ENT) and entertainment expenditures in excess of corporate tax deduction limit(OVER) was estimated to be a negative (-) value for earnings persistence, and the only samples with entertainment expenditures in excess of corporate tax deduction limit(OVER) was shown to be a negative (-) explanatory power for earnings persistence. These results suggest that the earnings relevance of entertainment expenses and entertainment expenditures in excess of corporate tax deduction limit is insufficient and has a negative effect on the long-term earnings persistence. In addition, the regression coefficient of entertainment expenses and earnings persistence in the samples with entertainment expenditures in excess of corporate tax deduction limit was not statistically significant, while the regression coefficient in the samples that exceeds the entertainment expenses loss limit was statistically significant at 1% level and was a negative (-) explanatory power. This study will be meaningful in that it has examined the explanatory relationship between the effect of entertainment expenses related expenditure and the earnings persistence with the time series flow of earnings by expanding previous studies. The results of this study will contribute to providing empirical clues timely when the policy maker sets entertainment expenditures in excess of corporate tax deduction limit.